Iran-US Crisis Impacting Nigeria's Real Estate Sector

Experts in Nigeria's real estate sector have raised alarms regarding the ongoing Iran-US crisis, which has led to increased construction costs and project delays. This discussion took place during a webinar organized by the International Real Estate Federation-Nigeria in partnership with Fortren & Company, moderated by Martin Uche, a Research Director at Fortren & Company.

Mr. Gbenga Olaniyan, Chairman of Estate Links Limited and Principal Partner at Gbenga Olaniyan & Associates, noted that the period from 2022 to 2025 has seen significant price fluctuations, exacerbated by panic among buyers.

He indicated that the closure of the Strait of Hormuz triggered immediate price increases and longer negotiation periods. Ogunniran Hakeem, CEO of Eximia Realty & Co, linked current issues to the lingering effects of the COVID-19 pandemic and subsequent global supply chain disruptions, particularly from China and the Russia-Ukraine war, which have affected critical material sourcing, especially steel.

He cited a dramatic rise in reinforcement prices from N150,000 to N500,000 per metric tonne.